United Trust Bank has broadened its living sector proposition with the launch of a suite of funding solutions designed to support the development of purpose-built student accommodation.
The new products will be made available to experienced developers working in established university locations across England and Wales.
They cover new-build projects, conversions and refurbishments, with terms of up to 60 months designed to take borrowers through every stage of a scheme’s lifecycle – from acquisition and development through to stabilisation and investment.
Finance packages will range from £7.5m to £35m, with loans of up to 65% loan to gross development value and up to 85% loan to cost. A maximum development term of 30 months is available within the overall facility.
The move builds on the bank’s broader push into the living sector, which also includes build to rent and co-living finance. Earlier this year, Andy Thomson was appointed senior director – operational real estate to work alongside Ben Jenkinson, head of product and strategy, in shaping the bank’s offer.
Adam Bovingdon, head of property development at United Trust Bank, said: “The UK PBSA sector presents exciting opportunities to developers and for UTB in supporting schemes which will help to address the shortage of good quality student accommodation.
“We look forward to supporting experienced developers and operators from initial land or building acquisition, through construction, and stabilisation and into a long-term interest-only investment loan.
“This end-to-end solution simplifies the finances for PBSA developers, enabling them to concentrate on delivering successful schemes, without the need to switch lenders.
“I am confident that our new offering will be warmly received by the market, enabling many high-quality new homes for students over the coming years.”
